Is Bitcoin Mining Still Profitable in 2021?
Bitcoin rose dramatically, as it was estimated at about $ 5,000 in March 2020, rising and setting a new record at nearly $ 42,000.
The increase of 340% in the value and price of Bitcoin has also been accompanied by a rise in the bitcoin hash rate of more than 41% since last year.
This January, the bitcoin hash rate reached an all-time high.
For your information, in May 2020, the Bitcoin mining bonus was split in half, which means the Bitcoin miners would get half of what they were paid before the split happened.
The combination of all these factors changed the Bitcoin mining process.
The question posed, which was posed as the title of this article:
Is Bitcoin Mining Still Profitable in 2021?
Here is the answer to this question.
The difficulty of mining Bitcoin is increasing:
One of the main things miners should keep in mind when mining bitcoins is how difficult the process is.
In short and simplified terms, the difficulty of mining Bitcoin determines the amount of work the mineral needs to solve the complex mathematical problem that will allow it to add a new block of transactions to the Bitcoin blockchain.
This difficulty increases or decreases after every 2016 block, or approximately every 14 days, depending on how quickly the previous 2016 block was found.
If the previous 2016 block took less than 14 days to discover, the difficulty increases, while it decreases if it took more than 14 days to discover.
The balance here was written by Satoshi Nakamoto in the form of an algorithm in the Bitcoin blockchain with the goal of maintaining an estimated 10 minutes of block detection time.
Since the hash rate tends to increase over time, so does the difficulty of detecting the mass, which in turn makes it difficult for miners with old hardware to keep up as their percentage of the total hash rate decreases over time.
It should be noted that the price of Bitcoin also tends to rise after the increase in the hash rate, and therefore the increasing difficulty does not always mean a decrease in profitability.
As there are some measures that miners take to increase their return on investment and increase profits, from choosing a cool area and lower electricity rates ...
Factors that determine the profitability of Bitcoin mining:
The best way to keep Bitcoin mining profitable is to get the latest and most efficient mining hardware at a good price.
Those looking to make a profit by investing in new mining equipment will need to consider the price, shipping cost, any potential delays, import taxes, and electricity costs involved in getting their new equipment up and running.
The ideal bitcoin miner is energy efficient, has less noise and offers an acceptable hash rate.
According to “CryptoCompare” mining profitability calculator, 1 TH / s of hash rate will generate approximately 0.00000613 Bitcoins, which is about $ 0.236 per day in earnings.
With a current bitcoin value of $ 36,000, to achieve 73 TH / s one must own the "Antminer S17" miner, which offers a profit potential of $ 17 per day.
While the S30 M ++ offers a hash rate of 112 TH / s, which means that it offers mining potential of $ 26.43 per day.
With the availability of these devices, Bitcoin miners still have to deduct electricity and maintenance costs, which can vary greatly depending on the country, energy supply and pricing, and which determine whether the operation is profitable or not.
Assuming an average power consumption of 30 watts / s and an average electricity cost of $ 0.10 / kWh, Bitcoin miners can expect to pay roughly $ 0.072 per TH of mining power, meaning they would pay $ 5.26 worth daily for 73 TH / s or $ 8.10 for 112 TH / s.
This means that bitcoin miners can expect to make a profit of 226% per day on operating costs with current generation devices.
Since electricity costs consume a large portion of Bitcoin mining profits, securing a low cost of electricity or using devices in an area with cheaper electricity is the fastest way to increase profitability.
Mining equipment purchased near or below its original launch date will pay for their costs faster than those purchased later, or at an inflated price.
Since all Bitcoin mining hardware of the current generation is nearly thousands of dollars in price, it is safe to say that most miners will not achieve a full return on investment for at least several months, but they may be able to offset some of their initial costs by selling the used miner and buying one. The latest.
In conclusion, it can be said that the profitability of Bitcoin mining depends on the electricity pricing, the climate of the place of mining, the equipment used, and the strategy adopted ...
Many followers of the bitcoin market find that investing and speculating in Bitcoin is easier than mining.
